COMMUNITY HEALTH SYSTEMS INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. COMMUNITY HEALTH SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.23 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 57.06% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement

Q3 FY16

Q3 FY15

Net Sales ($mil)

4380.0

4846.0

EBITDA ($mil)

461.0

638.0

EBIT ($mil)

196.0

350.0

Net Income ($mil)

-79.0

52.0

Balance Sheet

Q3 FY16

Q3 FY15

Cash & Equiv. ($mil)

133.0

186.0

Total Assets ($mil)

22227.0

27189.0

Total Debt ($mil)

15322.0

16887.0

Equity ($mil)

1821.0

4241.0

Profitability

Q3 FY16

Q3 FY15

Gross Profit Margin

11.48

14.57

EBITDA Margin

10.52

13.16

Operating Margin

4.47

7.22

Sales Turnover

0.84

0.72

Return on Assets

-7.12

1.25

Return on Equity

-86.16

9.36

Debt

Q3 FY16

Q3 FY15

Current Ratio

1.69

1.76

Debt/Capital

0.89

0.8

Interest Expense

234.0

242.0

Interest Coverage

0.84

1.45

Share Data

Q3 FY16

Q3 FY15

Shares outstanding (mil)

113.63

118.18

Div / share

0.0

0.0

EPS

-0.69

0.51

Book value / share

16.03

35.89

Institutional Own %

n/a

n/a

Avg Daily Volume

6602169.0

4328466.0

Valuation

SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.34 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.07. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, COMMUNITY HEALTH SYSTEMS INC proves to trade at a discount to investment alternatives within the industry.

Price/Earnings

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discount

Price/Cash Flow

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discount

CYH NM

Peers 23.84

CYH 0.54

Peers 9.42

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CYH's P/E is negative making this valuation measure meaningless.

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CYH is trading at a significant discount to its peers.

Price/Projected Earnings

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discount

Price toEarnings/Growth

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discount

CYH 6.92

Peers 16.53

CYH NA

Peers 0.93

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.